Eugene Graner: $60 oil will have to wait

Despite a desire for $60 oil by OPEC, domestic shale producers, and many others, we don’t always get what we want. Instead, it looks likes $60 oil might be just out of reach.

Graner mentions there are several technical and fundamental obstacles keeping oil from going up.

Consistent production increases, in addition to 13 straight weeks of rig count increases, indicates more oil flooding into the market. Production is expected to be around 9.5 million barrels per day in May.

Another factor that could affect the price of oil is disruption in production due to unrest in the Middle East. So even though $60 isn’t that out of reach, it’s just unlikely that we’re going to get there in the short term.

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